Solar Renewable Energy is the latest investment of ACEN Corp which spent PHP8.7 billion on a large solar power project in Paluig, Zambales.
The move of the renewable energy pioneer ACEN, the renewable energy arm of the Philippines’ largest conglomerate Ayala Corporation, sending a clear strategic signal of its intentions to grow its renewables portfolio.
Project Kickoff and Financial Commitment
The purchase is done via subscription to 321,879,704 shares, worth PHP 8,699,542,160, wherein ACEN shall own said shares issued through an increase of the authorized capital stock (ACS) or current authorized equity of Giga Ace 8, which is a special-purpose corporation designed to own and operate solar renewable energy projects.
. Once the project gets started, ACEN will pay Giga Ace 8 PHP 2,174,885,530 as a first tranche, with the rest payable upon securing all regulatory approvals for the ACS increase.
The proceeds from this subscription will be dedicated to the Palauig Solar 2, a 300.011-megawatt peak (MWp) / 237 megawatt alternating current (MWac) project, which will increase the Solar Renewable Energy capacity of the region.
Image: Collected
The Share Subscription is made of 3 types of Common a Shares: 26,093,464 shares at PHP 10.00 each, Redeemable Preferred a Shares (RPS A): 234,889,072 shares at PHP 10.00 each, and Redeemable Preferred C Shares (RPS C): 60,897,168 shares at PHP 100.00 each.
This diverse shareholding structure aims to maximize the financial base of Giga Ace 8 while securing the completion of the solar project.
Achievements and Future Ambitions
ACEN is already well ahead of schedule, having already hit its 2025 goal for 5 gigawatts (GW) of renewable energy capacity back in 2022, and 65 per cent of that capacity installed.
Once this was accomplished, ACEN’s goal was to keep the momentum going towards achieving its high-set objective of 20 GW of Solar Renewable Energy capacity by 2030.
ACEN’s financial strength supports this goal: net income as of end of March 2023 was PHP 2.7 billion in the Philippines, a 34 per cent increase on the same period last year, ‘driven by new solar and wind farms built in the Philippines and Australia and revenues from green certificates in Australia’.
Solar Renewable Energy Projects by ACEN
ACEN Corp has been developing several flagship projects under its Solar Renewable Energy portfolio, including the 300.011MWp/237MWac Palauig Solar Power Plant in Zambales, and the growing 120MWp Alaminos Solar Power Plant in Laguna.
Using best-in-class photovoltaic technology and battery energy storage system, it provides a reliable source of power.
ACEN had also expanded its renewable energy portfolio with the North Luzon Renewables Wind Farm with 81 MW of wind energy in Pagudpud, Ilocos Norte taking advantage of its good wind currents. Overseas, its New England Solar Farm in New South Wales, Australia, is one of the biggest solar farms in the country at 720 MWp with battery storage.
In the Visayas, the 80 MWp Islasol Solar Power Plants in Negros Occidental brought in a significant amount of economic benefits and reduced 231,000 tones/year of carbon emissions, demonstrating the strategic execution and deep faith in Solar Renewable Energy of ACEN, which brings back the Philippines to the forefront of the global renewable energy race.
These projects brought ACEN closer to its goal of 20 GW of renewable energy capacity by 2030.With the support of more funding and its growing capacity, ACEN is helping the Philippines’ clean energy future and becoming a role model for renewable energy in the region.
Alongside these and the other projects that helped make Palauig a trophy asset, ACEN, with its Solar 2, has emerged as the vanguard of the clean energy transition and its promise of a green and prosperous future.